Markets

Biotech stocks

Biotech stocks are the companies discovering and developing new drugs and therapies — a higher-risk, higher-reward corner of healthcare where clinical-trial results can move shares sharply.

Updated daily · as of July 27, 2026

1-month

+0.5%

6-month

+14.4%

1-year

+70.6%

Sentiment

Neutral

Leaders

6

Combined cap

$605B

Top Biotech stocks by market cap

The biggest biotech companies — tap any to trade it with virtual cash.

About the Biotech sector

Biotechnology focuses on inventing new treatments, often for diseases with no good options today. Success can be enormous, but many drug candidates fail in clinical trials — so individual biotech stocks can be far more volatile than the broader market.

Because outcomes hinge on binary events like trial data and regulatory approvals, many beginners prefer a basket of biotech names to spread that risk rather than betting on one drug. The sector is also a frequent source of acquisitions, as larger pharma companies buy promising innovators.

What moves Biotech stocks

  • Clinical-trial data readouts
  • FDA and regulatory approvals or rejections
  • Mergers and acquisitions by big pharma
  • Interest rates, which affect funding for unprofitable developers

Compare Biotech leaders

How to invest in Biotech stocks

  1. 1

    Get to know the leaders. Start with the biggest names above — like Amgen — and read what each company does and how its stock has performed.

  2. 2

    Decide between single stocks and a basket. Picking one company concentrates your bet; a sector ETF like XBI spreads it across the whole group.

  3. 3

    Practice before you commit. On Invest you trade biotech stocks at live prices with €1,000,000 in virtual cash — so you can test ideas with zero risk.

Start practicing

Biotech stocks: FAQ

What are the best Biotech stocks?

The largest biotech companies by market value right now include AMGN, GILD, VRTX. "Best" depends on your goals — Invest lets you compare each one's price, performance, and Buy/Hold/Sell signal, then practice trading them with virtual cash before risking real money.

How do I invest in Biotech stocks?

You can invest in biotech by buying individual companies like AMGN or GILD, or by holding a sector ETF such as XBI for instant diversification. On Invest you can practice both approaches free, with €1,000,000 in virtual cash at live market prices.

Is Biotech a good sector to invest in?

Biotech stocks are the companies discovering and developing new drugs and therapies — a higher-risk, higher-reward corner of healthcare where clinical-trial results can move shares sharply. Over the past year the XBI biotech benchmark is +70.6%. No sector is guaranteed to rise, so many investors diversify across several — the safest way to learn how biotech behaves is to trade it in a simulator first.

Can I practice trading Biotech stocks for free?

Yes. Invest is a free stock market simulator — start with €1,000,000 in virtual cash and buy or sell any biotech stock at live prices, with no real money and no risk. It runs in your browser and as a free iOS app.

Explore other sectors